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IMF Country Report No. 16/275

CHAD: SELECTED ISSUES

August 2016

This Selected Issues paper on the Republic of Chad was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on July 8, 2016.

Copies of this report are available to the public from

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International Monetary Fund

Washington, D.C.

© 2016 International Monetary Fund

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CHAD: SELECTED ISSUES

July 8, 2016

Approved By

African Department

Contents

• MACROFINANCIAL LINKAGES IN CHAD

• A. Financial Sector Overview

• B. Key Macro-Financial Linkages in Chad

• C. Financial Inclusion and Microfinance

• References

• BOX

• 1. Stress Tests on Commercial Banks

• FIGURES

• 1. Key Macro-Financial Linkages

• 2. Oil Prices and Health of the Banking Sector’s Loan Portfolio

• 3. Banks’ Exposure to the Public Sector

• 4. Banks’ Excess Reserves and Deposits

• 5. Credit to the Private Sector

• 6. Customer Deposits to Total Loans

• 7. Households’ Financial Access

• 8. Chad: A Cross-Country View of Financial Inclusion

• 9. Gender Inequality in Financial Inclusion

• TABLES

• 1. Financial Soundness Indicators

• 2. Chad’s MFI Sector

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CHAD: SELECTED ISSUES

July 8, 2016

Approved By

African Department

Contents

• CHAD’S FIRST STEPS IN THE REGIONAL PUBLIC SECURITIES MARKET

• A. Background

• B. A Gradual Development of the Market, Which Remains Limited Despite a Record High Level of Issuances in 2015

• C. Chad’s Participation in the Regional Public Market

• D. Further Development of the CEMAC Debt Market: Challenges for the Region and for Chad

• References

• FIGURES

• 1. CEMAC Public Securities Auction Market

• 2. First Auctions by Chad

• 3. Weighted Average Interest Rate of 3 month - and 6 month - T-Bills Issuances

• 4. Average Interest Rate on 6-month Treasury Bills’ Issuances

• ANNEXES

• I: CEMAC Treasury Bills Yearly Issuances

• II: Interest Rates on CEMAC Treasury Bills Issuances

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CHAD: SELECTED ISSUES

July 8, 2016

Approved By

African Department

Contents

• PUBLIC INVESTMENT EFFICIENCY IN CHAD

• A. Introduction

• B. Trends in Chad’s Public Investment and Impact on Infrastructure Gap

• C. Reinforcing the Efficiency of Public Investment Management

• References

• FIGURES

• 1. Long-Term Trends in Chad’s Investment

• 2. Investment Stock in SSA LIDCs, in 2000 and 2013

• 3. Public Investment and Quality of Infrastructure

• 4. Perception of the Quality of Infrastructure

• 5. Public Investment Management Index (PIMI)

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CHAD: SELECTED ISSUES

July 8, 2016

Approved By

African Department

Contents

• CHAD’OIL SECTOR - INCREASING COMPLEXITY PLACING GREATER DEMANDS ON TRANSPARENCY AND INTEGRITY ARRANGEMENTS

• A. Introduction

• B. Increasing Complexity of the Oil Sector

• C. Two Petroleum Fiscal Regimes

• D. Four Oil Companies

• E. Oil Sector Transparency Arrangements

• F. Oil Sector Integrity Arrangements

• References

• BOXES

• 1. The Badoit Project Purchase

• 2. The Extractive Industries Transparency Initiative ETTI

• FIGURES

• 1. Oil and Non-Oil Revenue, 2003-15

• 2. Oil Profile, 2003-15

• TABLE

• 1. 2013 EITI Report 2013 - Oil Sector